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Merge, LLC/Port of Dubuque LLC Termination of Development AgreementCity of Dubuque City Council ACTION ITEMS # 4. Copyrighted February 2, 2026 ITEM TITLE: Merge, LLC/Port of Dubuque LLC Termination of Development Agreement SUMMARY: City Manager recommending City Council approval of the Termination Agreement by and between the City of Dubuque, Iowa, Port of Dubuque LLC, and Merge, LLC for a mixed -use development to be located along the corner of Fifth and Bell Streets, west of the Flexsteel corporate office building. RESOLUTION Approving The Termination Agreement Of The Development Agreement Between The City Of Dubuque, Iowa And Merge, LLC, Dated November 18, 2019, As Amended, In The City Of Dubuque, Iowa, Assigned By Merge, LLC To Port Of Dubuque LLC By Assignment Of Development Agreement Dated February 13, 2020 SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo Merge, LLC_Port of Dubuque LLC Termination of Development Agreement 2. Staff Memo MVM_Merge Termination_01-27-2026 3. MERGE TERMINATION AGREEMENT Resolution 4. Termination Agreement —Signed by Merge Page 743 of 865 Dubuque THE CITY OF uFA�a9a av DuBE 13 Masterpiece on the Mississippi zoo�•*o rP PP 2017202019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Merge, LLC/Port of Dubuque LLC Termination of Development Agreement DATE: January 29, 2026 Senior Counsel Barry Lindahl is recommending City Council approval of the Termination Agreement by and between the City of Dubuque, Iowa, Port of Dubuque LLC, and Merge, LLC for a mixed -use development to be located along the corner of Fifth and Bell Streets, west of the Flexsteel corporate office building. Once the Termination Agreement is approved, the City Attorney's Office will schedule a Closing and after that Closing the City will own property free and clear and can market it to other developers. I concur with the recommendation and respectfully request Mayor and City Council approval. v Mic ael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Barry Lindahl, Senior Counsel Page 744 of 865 THE CITY OF DUB E Masterpiece on the Mississippi BARRY A. LINDAHL, ESQ. SENIOR COUNSEL MEMO To: Michael C. Van Milligen City Manager DATE: February 2, 2026 RE: MERGE, LLC/PORT OF DUBUQUE DEVELOPMENT AGREEMENT Dubuque AII•AnerIn Cily 2007-2012.2013 2017*2019 LLC TERMINATION OF The City of Dubuque and Merge, LLC entered into a Development Agreement dated November 18, 2019, as amended for the development of property in the Port of Dubuque. Merge, LLC is a development team focused on real estate development in Qualified Opportunity Zones across the Midwest. The company's passion is creating mixed -use developments in a city's urban core which reflect both a community's history and its aspirations. Merge team members bring experience in real estate, economic development, construction, city planning, space making, technology startups, and small business. Merge brought a formal proposal to City staff for a mixed -use development (the Project) to be located in the Port of Dubuque. The $18 Million Project was intended to include 187 residential units and approximately twenty-three thousand (23,000) total square feet of commercial/retail space. The project was to be located along the corner of Fifth and Bell Streets, west of the Flexsteel corporate office building. Merge assigned the Development Agreement to Port of Dubuque LLC by Assignment dated February 13, 2020. Port of Dubuque LLC assumed the responsibilities of the Developer in the Development Agreement. The development property was conveyed to the Developer at the closing November 30, 2023. Since that time, the Developer has on several occasions advised the City that due to market conditions the Developer has been unable to obtain financing for the project. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL balesq@cityofdubuque.org Page 745 of 865 The City has proposed to the Developer that without further delays for the project, it is in the best interest of the parties to terminate the Development Agreement. The Developer has accepted the Termination Agreement attached hereto. The Developer agrees to: (1) Convey the Property to City by Warranty Deed, free and clear of all liens and encumbrances for no consideration; (2) Deliver to City payment to the City for the following or a statement showing that all real estate taxes on the Property prorated for fiscal year 2023-2024, fiscal year 2024-2025, and prorated for fiscal year 2025-2026; (3) Deliver to City a release of all easements on the Property; (4) Deliver to City an instrument conveying all right, right and interest in the Decorative Panels sold by City to Port of Dubuque. In consideration for City waiving any rights it may have to declare the Developer in default, the Developer waives any and all rights it may have under the default section of the Development Agreement. From and after the Closing, the Development Agreement shall stand as terminated and no party shall have any rights or obligations to the other parties under the Development Agreement and the parties hereby waive any and all claims they may have against the other parties arising out of the Development Agreement. Once the Termination Agreement is approved, we will schedule a Closing and after that Closing the City will own property free and clear and can market it to other developers. I recommend that the Termination Agreement be submitted to the Mayor and City Council for consideration and approval. OVA Attachments cc: Crenna Brumwell, City Attorney Jill Connors, Economic Development Director OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001-6944 TELEPHONE (563) 583-4113 / FAx (563) 583-1040 / EMAIL tsteckle@cityofdubuque.org Page 746 of 865 Prepared by Barry A. Lindahl, Esq. 300 Main St Ste. 330 Dubuque IA 52001-6944 (563) 583-4113 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13'" St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 32-26 APPROVING THE TERMINATION AGREEMENT OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND MERGE, LLC, DATED NOVEMBER 18, 2019, AS AMENDED, IN THE CITY OF DUBUQUE, IOWA, ASSIGNED BY MERGE, LLC TO PORT OF DUBUQUE LLC BY ASSIGNMENT OF DEVELOPMENT AGREEMENT DATED FEBRUARY 13, 2020 Whereas, the City of Dubuque, Iowa (City), Port of Dubuque LLC (Port of Dubuque) and Merge, LLC (Merge) entered into a Development Agreement dated November 18, 2019, as amended, for the development of property in the Port of Dubuque; and Whereas, Merge assigned the Development Agreement to Port of Dubuque by Assignment dated February 13, 2020; and Whereas, City, Port of Dubuque and Merge now agree that it is in the best interests of the parties to terminate the Development Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE IOWA, AS FOLLOWS: SECTION 1. The Termination Agreement attached here is hereby approved. SECTION 2. The Mayor is hereby authorized and directed to sign the Termination Agreement on behalf of the City of Dubuque. CITY OF DUBUQUE, IOWA By: a . Cavan�,,Mayor ATTEST: Adrienne N. Breitfelder, City Clerk Doc ID: 011462570007 Type: GEN Kind: AGREEMENT Recorded: 02/04/2026 at 09:57:19 AM Fee Amt: $47.00 Paqe 1 of 7 Dubuque County Iowa Ann E. Sweeney Recorder File2026-0000113 TERMINATION AGREEMENT Recorder's Cover Sheet Preparer Information: Barry A. Lindahl 300 Main Street, Suite 330, Dubuque, IA 52001, Tel: 563-589-4381 Taxpayer Information: City of Dubuque 50 W. 13th Street Dubuque, IA 52001 Return Document To: Barry A. Lindahl 300 Main Street, Suite 330, Dubuque, IA 52001, Tel: 563-589-4381 Grantors: Merge, LLC Grantees: City of Dubuque, a municipal corporation Legal Description: Lot 2 Adams Company's 5th Addition in the City of Dubuque, Iowa Nl�Ue C(� Y tovMic Ow4oPACIt 6) 376,11 10 ,r(CArm TERMINATION AGREEMENT OF DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND MERGE, LLC, DATED NOVEMBER 18, 2019, AS AMENDED, LOT 2 ADAMS COMPANY'S 5T" ADDITION IN THE CITY OF DUBUQUE, IOWA, ASSIGNED TO PORT OF DUBUQUE LLC BY ASSIGNMENT OF DEVELOPMENT AGREEMENT DATED FEBRUARY 13, 2020 a"o1d This Termination Agreement, dated for reference purpose the a day of EM, is made and entered into by and between the City of Dubuque, Iowa (City), Port of Dubuque LLC (Port of Dubuque) and Merge, LLC (Merge). Whereas, the City and Merge entered into a Development Agreement dated November 18, 2019, as amended; and Whereas, Merge assigned the Development Agreement to Port of Dubuque by Assignment dated February 13, 2020; and Whereas, City, Port of Dubuque and Merge now agree that it is in the best interests of the parties to terminate the Development Agreement. NOW, THEREFORE, IT IS AGREED BY AND AMONG THE PARTIES AS FOLLOWS: Section 1. City conveyed the Property which is the subject of the Development Agreement to Merge. Section 2. On the Closing date, which shall be the 16tt' day of January, 2026, Port of Dubuque and Merge shall: (1) Convey the Property to City by Warranty Deed, free and clear of all liens and encumbrances for no consideration; (2) Deliver to City a statement showing that all real state taxes on the Property due and payable in current fiscal year and real estate taxes for fiscal year 2025- 2026 prorated to the date of the Closing; (3) Deliver to City a release of all easements on the Property; (4) Deliver to City an instrument conveying all right, title and interest in the Decorative Panels sold by City to Port of Dubuque; Section 3. Port of Dubuque and Merge shall save, defend and hold harmless the City of Dubuque, its officers and employees, from and against any and all claims arising out of or related to the Development Agreement, including but not limited to possession and occupation of the Property. This Section 3 shall survive the Closing. 12292025ba1 Section 4. In consideration for City waiving any rights it may have to declare Port of Dubuque or Merge in default, Port of Dubuque and Merge waive any and all rights it may have under Section 15 of the Development Agreement. Section 5. From and after the Closing, the Development Agreement shall stand as terminated and no party shall have any rights or obligations to the other parties under the Development Agreement and the parties hereby waive any and all claims they may have against the other parties arising out of the Development Agreement. CITY OF DUBUQUE, IOWA By: -- ATTEST Adrienne N. Breitfelder, C y Clerk DEVELOPER PORT OF DUBUQUE LLC A Delaware limited liability company By: OZ Dubuque LLC A Delaware limited liability company Its Manager By: Merge, LLC An Iowa limited liability company Its Manager Brent Dahlstrom, Manager 12292025ba1 NICT'OK LLC An Iowa limited company Its Manager go Brent Dahlstrom, Manager k, eoyj q3cjz�.' 12292025bal STATE OF IOWA SS COUNTY OF DUBUQUE On this � day of Feb y'c.lc.Y- 20bZ before me the undersigned, a Notary Public in and for the said County and State, personally appeared Brad M. Cavanagh and Adrienne N. Breitfelder, to me personally known, who, being by me duly sworn, did say that they are the Mayor and City Clerk, respectively, of the City of Dubuque, Iowa, a municipal corporation executing the instrument to which this is attached; that the seal affixed hereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of the City of Dubuque, Iowa, by authority of its City Council; and that said Mayor and City Clerk acknowledged the execution of said instrument to be the voluntary act and deed of said City, by it and by them voluntarily executed. Notary Public STATE OF IOWA COUNTY OF DUBUQUE ,�' �.� TUSDEE LYNN 9LUS CommtNlon Number 842479 My Comm. Exp. On this day of �T 20')-�before me the undersigned, a Notary Public in and for the State of Iowa, personally appeared Brent Dahlstrom, to me personally known, who, being by me duly sworn, did say that he is Partner & Manager of Merge, LLC the corporation executing the instrument to which this is attached and that as said Partner & Manager of Merge, LLC acknowledged the execution of said instrument to be the voluntary act and deed of said company, by it and by them voluntarily executed. V JILL L KRAAYENBRINK commission Number 797477 my Jut m29 2028p�res 12292025ba1 Prepared by Barry A. Lindahl, Esq. 300 Main St., Ste. 330, Dubuque IA 52001-6944, (563) 583-4113 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 32-26 APPROVING THE TERMINATION AGREEMENT OF THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF DUBUQUE, IOWA AND MERGE, LLC, DATED NOVEMBER 18, 2019, AS AMENDED, IN THE CITY OF DUBUQUE, IOWA, ASSIGNED BY MERGE, LLC TO PORT OF DUBUQUE LLC BY ASSIGNMENT OF DEVELOPMENT AGREEMENT DATED FEBRUARY 13, 2020 Whereas, the City of Dubuque, Iowa (City), Port of Dubuque LLC (Port of Dubuque) and Merge, LLC (Merge) entered into a Development Agreement dated November 18, 2019, as amended, for the development of property in the Port of Dubuque; and Whereas, Merge assigned the Development Agreement to Port of Dubuque by Assignment dated February 13, 2020; and Whereas, City, Port of Dubuque and Merge now agree that it is in the best interests of the parties to terminate the Development Agreement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE IOWA, AS FOLLOWS: SECTION 1. The Termination Agreement attached here is hereby approved. SECTION 2. The Mayor is hereby authorized and directed to sign the Termination Agreement on behalf of the City of Dubuque. CITY OF DUBUQUE, IOWA By: avan ,_!Mayor ATTEST: Adrienne N. Breitfelder, City Clerk CERTIFICATE of the CITY CLERK STATE OF IOWA SS: COUNTY OF DUBUQUE ) I, Adrienne N. Breitfelder, City Clerk, do hereby certify that I am the duly appointed, qualified, City Clerk of the City of Dubuque, Iowa, in the County aforesaid, and as such City Clerk, I have in my possession or have access to the records of the proceedings of the City Council. I do further state that the hereto attached Resolution No. 32-26 is a true and correct copy of the original. In Testimony Whereof, I hereunto set my hand and official seal of the City of Dubuque, Iowa. Dated at Dubuque, Iowa, on this 4ch day of February 2026. Adrienne N. Breitfelder, City Clerk